One of the goals of the initiative is to cut down on instances of financial crime, such as the altering of papers that are associated with letters of credit. Additionally, it will investigate whether or not the use of blockchain technology in the financial sector is even possible.
For the purpose of the pilot project, the central bank has recruited a number of different banks, including HDFC Bank, ICICI Bank, and SBI. The effort also has the backing of well-known international technology companies including IBM, SettleMint, and Corda Technologies.
Since its inception, the blockchain industry in India has had the support of the Indian government. The announcement that the Reserve Bank of India (RBI) will establish a blockchain-based digital currency was made in February by the nation’s finance minister.